THE EFFECT OF INTEGRATION INTO GLOBAL VALUE CHAINS (GVCs) ON INNOVATION PERFORMANCE AND THE CASE OF TÜRKİYE

Date

2025-7

Author

Gökten Gürpınar, Selin

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The thesis investigates the effect of integration into global value chains (GVCs) on innovation performance by analyzing different types of GVC participation, i.e., backward and forward participation. To this end, a cross-country industry-level analysis is conducted using panel data from 41 countries and 19 industries over the period 1995-2018. The thesis puts special emphasis on Türkiye by incorporating both descriptive and econometric analyses. Bridging the fields of GVC and innovation studies, it constructs a comprehensive dataset by transforming and aggregating data from multiple sources, including the OECD Trade in Value-Added (TiVA), Patents, and Analytical Business Enterprise Research and Development databases. The findings indicate that the effects of GVC participation on innovation performance vary according to the type of participation and the technology intensity of industries. The cross-country analysis reveals that backward participation positively affects innovation performance, whereas forward participation does not yield a significant positive effect. When considering technology intensity, importing inputs for exports enhances innovation performance only in medium high-technology industries, while providing inputs for other countries’ exports improves innovation performance in medium low-technology industries. Regarding Türkiye, the results indicate no significant overall effect of either backward or forward participation on innovation performance. However, both backward and forward participation positively affect innovation in medium high-technology industries. Based on these findings, the thesis provides several policy implications, suggesting that the differences in the effects of GVC participation on innovation performance may stem from underlying factors in knowledge economics and innovation studies.

Subject Keywords

Global value chains, innovation performance, backward and forward participation, technology intensity, Türkiye

URI

https://hdl.handle.net/11511/115420

Collections

Graduate School of Social Sciences, Thesis